Saudi Arabia is witnessing, according to analysts, rapid growth in its information technology market, making it the fastest-growing market in the Middle East, Türkiye, and the African region.
Jyoti Lalchandani, regional managing director of research firm IDC, stated that the country’s spending on information and communication technology is expected to reach $37.5 billion by the end of 2024.
These remarks were made during the ICT Indicators Forum, which took place lately in Riyadh and was jointly hosted by the Saudi Ministry of Communication and Information Technology and the Communications, Space, and Technology Commission.
It was also noted that investment in the information technology sector by the Saudi government is projected to exceed $752 million by the end of 2024, as innovative technologies become essential for building an “experience economy.”
Lalchandani mentioned that spending on artificial intelligence (AI), big data analytics, the Internet of Things (IoT), and cybersecurity is expected to grow significantly and will account for nearly one-third of total IT spending in Saudi Arabia by 2024. Specifically, AI spending in the country is predicted to surpass $720 million in 2024 and reach $1.9 billion by 2027, with a compound annual growth rate (CAGR) of 40 percent. Half of this spending will be on interpretative AI.
Furthermore, Saudi Arabia has emerged as a prominent cloud hub, with spending on public cloud services forecasted to exceed $2.4 billion in 2024 and reach $4.7 billion by 2027. Software-as-a-Service (SaaS) will represent over 50 percent of the spending in 2024.
In terms of cybersecurity, IDC highlighted that spending on cybersecurity alone will surpass $1 billion in 2024 and reach $1.6 billion in 2027.
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